The National Credit Guarantee Company Limited (NCGC) has supported ₦64.13bn in loans to 174,495 borrowers across Nigeria within its first year of operations, highlighting the growing role of credit guarantees in addressing financing barriers faced by businesses and individuals.

As of October 21, 2026, the company had deployed ₦30.19bn in guarantees through 19 participating financial institutions, including commercial banks, microfinance banks and development finance institutions. The programme has reached beneficiaries across all 36 states and the Federal Capital Territory, according to the company’s Managing Director and Chief Executive Officer, Bonaventure Okhaimo.

The figures highlight an important financing mechanism for Nigeria’s economy: enabling lenders to extend credit to viable businesses that may struggle to meet conventional collateral requirements.

₦30.19bn in Guarantees Unlocks More Than Double That Amount in Loans

The NCGC’s performance report shows that every ₦1 deployed in guarantees has supported approximately ₦2.12 in lending.

Rather than providing loans directly, the company shares part of the credit risk with participating financial institutions. Under its standard framework, the guarantee can cover up to 60 per cent of eligible loan exposure, depending on the applicable terms.

This arrangement is designed to reduce the potential losses lenders face when financing borrowers considered difficult to assess or inadequately secured.

For small businesses, which often lack substantial assets to pledge as collateral, the model could open doors to formal financing that might otherwise remain inaccessible.

The approach also allows the company’s capital to support a larger volume of lending than would be possible if the funds were used exclusively for direct loans.

MSMEs Remain Central to the Financing Strategy

Micro, small and medium-sized enterprises are a major focus of the credit guarantee programme because limited access to affordable financing can constrain their ability to expand operations, purchase equipment, maintain inventory and employ additional workers.

By reducing lending risks, the NCGC aims to encourage financial institutions to finance more businesses with viable operations but insufficient conventional collateral.

The potential economic benefits extend beyond individual borrowers. Improved access to working capital can help businesses maintain production, respond to customer demand, strengthen supply chains and build more sustainable operations.

However, the long-term impact will depend on whether beneficiaries can obtain financing on suitable terms and use the funds productively. Access to credit must be accompanied by sound business management, repayment capacity and appropriate financial support.

Women and First-Time Borrowers Gain Access to Formal Finance

Women accounted for 74,503 beneficiaries, representing 42.7 per cent of the total borrowers reached by the scheme.

The programme also recorded 22,616 borrowers who accessed formal financing for the first time, equivalent to 12.96 per cent of beneficiaries. A further 7,731 borrowers were recorded under youth empowerment.

These figures highlight the programme’s potential to extend formal financial services to groups that may encounter additional barriers when seeking business loans.

For women entrepreneurs, access to finance can support inventory purchases, business expansion, equipment acquisition and entry into new markets. Young entrepreneurs may also benefit from financing that helps them develop businesses in sectors where conventional collateral requirements can be difficult to meet.

First-time access to formal credit is particularly significant because it can help borrowers establish a financial track record, potentially improving their ability to access other financial products in the future.

Nevertheless, the number of beneficiaries alone does not establish whether loans are affordable or whether businesses have grown. Those outcomes will require continued monitoring of repayment performance, business survival and income generation.

Trade and Agriculture Account for More Than 80% of Beneficiaries

Trade and commerce, alongside agribusiness and agro-processing, accounted for just over 80 per cent of the programme’s beneficiaries.

The concentration reflects the importance of financing businesses involved in the movement of goods, agricultural production and the processing of raw materials.

In trade, access to working capital can help businesses restock goods, manage cash flow and respond to changes in demand. In agriculture, financing can support production inputs, equipment, aggregation, storage and processing activities.

Agro-processing is particularly important because it can connect farmers to larger markets while creating opportunities to retain more value within Nigeria’s agricultural supply chain.

Expanding credit in these sectors could therefore support business activity across multiple stages of production and distribution. However, agricultural borrowers also face risks associated with weather, insecurity, price volatility and market access, making appropriate loan structures and risk assessment essential.

NCGC Reports Nearly 915,000 Jobs Associated With Supported Borrowers

The company said participating financial institutions reported 175,481 direct jobs associated with the borrowers supported by the scheme. It estimated another 739,310 indirect jobs, bringing the total number of jobs impacted to 914,791.

According to Okhaimo, the direct employment figures were based on information submitted by participating financial institutions, while indirect employment was estimated using sector-specific economic multipliers.

The figures suggest that credit guarantees may have implications beyond the immediate relationship between lenders and borrowers. Businesses receiving financing can generate demand for suppliers, transport operators, distributors and other service providers.

However, the reported employment figures should be interpreted as jobs associated with supported borrowers, not necessarily jobs newly created solely because of the guarantees. Establishing the programme’s net employment impact would require further assessment of how many jobs would have existed without the intervention.

GuaranteeHer Targets Women-Owned Businesses

The NCGC has also introduced GuaranteeHer, a gender-responsive credit guarantee framework designed to strengthen financing opportunities for women-owned businesses.

The initiative aims to mobilise more than ₦100bn in lending over five years, support at least 20,000 women-owned enterprises and contribute to more than 150,000 jobs.

GuaranteeHer provides guarantee coverage of up to 70 per cent of eligible loan exposure, compared with the standard framework’s 60 per cent, subject to programme conditions and a maximum guarantee obligation of ₦50m per borrower.

Rather than establish a separate lending product, the initiative adds a risk-sharing layer to existing women-focused programmes offered by participating banks. The stated objective is to help lenders offer eligible borrowers better financing terms, including reduced collateral requirements and longer repayment periods.

If implemented effectively, the programme could help women-owned businesses overcome some of the structural barriers that restrict their access to formal credit.

A ₦100bn Capital Base Supports Expansion Potential

The NCGC began operations with a capital base of ₦100bn, contributed equally by the Bank of Industry, Ministry of Finance Incorporated, Nigeria Sovereign Investment Authority and Nigerian Consumer Credit Corporation, known as CREDICORP.

The company has said this capital base could support a guarantee portfolio of up to ₦1tn under its leverage framework, creating scope to mobilise additional financing through partnerships with lenders.

Achieving that potential will depend on the company’s ability to maintain adequate risk controls, attract more participating institutions and ensure that guarantees translate into sustainable lending.

Financial literacy and borrower capacity are also important. Businesses need to understand loan obligations, maintain reliable financial records and manage cash flow to improve their chances of qualifying for credit and repaying it successfully.

The NCGC has introduced its Credit Advantage Series to help MSMEs understand credit requirements and strengthen their financial capabilities.

Turning Credit Access Into Sustainable Business Growth

The NCGC’s first-year figures demonstrate how credit guarantees can help mobilise lending beyond the funds committed directly by the guarantee provider.

For Nigeria’s MSMEs, the opportunity lies in converting improved access to finance into higher productivity, stronger cash flow, business expansion and sustainable employment. For lenders, the model offers a way to share risks while reaching eligible borrowers who might otherwise struggle to secure financing.

The next measure of success will be whether the programme can scale responsibly, improve financing terms and support businesses through economic uncertainty without compromising repayment discipline.

Ultimately, expanding credit is only one part of building a stronger enterprise sector. Combining risk-sharing with sound lending practices, financial literacy and business development support will be essential to ensuring that the NCGC’s intervention delivers lasting value for borrowers and the wider Nigerian economy.